SINGAPORE (Dec 22): Boustead Projects Land (Vietnam) Co. (BPLV), a wholly-owned subsidiary of real-estate solutions specialist Boustead Projects, has entered into an agreement to sublease land for the development of industrial leasehold properties in Vietnam.

Under the contract, BPLV will sublease land from Thao Dien Real Estate Corporation at Nhon Trach 2 – Nhon Phu Industrial Park, just South-east of Ho Chi Minh City.

The land will be taken over in two phases, comprising 60,000 sqm in the first phase and 126,903 sqm in the second phase, for about 40 years up until February 2057.  BPLV is entitled to further sublet the land, or parts of it.

In a filing to SGX on Friday, Boustead Projects says the industrial park’s close proximity to Ho Chi Minh City makes it a strategic logistics location. The group intends to develop industrial leasehold properties for multinational corporations.

“We are encouraged by our growing presence in Vietnam,” says Wong Yu Wei, deputy chairman and executive director of Boustead Projects.

“Diversifying our business outside Singapore remains one of our core priorities and we will continue to work hard at our business development efforts in Vietnam and other target overseas markets,” he adds.

The contract is not expected to have any material impact on Boustead Projects’ earnings per share or net tangible assets per share for the financial year ending March 31, 2018.

Shares of Boustead Projects closed 1.5 cents lower at 87 cents on Friday.